International Journal of Academic Research and Development

International Journal of Academic Research and Development


International Journal of Academic Research and Development
International Journal of Academic Research and Development
Vol. 3, Issue 1 (2018)

Cartel and competition law in India: An overview


Dr. Kavita Dhull

Cartel behavior attacks the very heart of a “free economy” – the determination of price and output through competition and consumer preferences – diverts resources from their optimal use, and transfers wealth to those engaged in illegal activity. The uncertainty that exists in an oligopoly can lead to collusive behavior by firms. When this happens the existing businesses decide to engage in price fixing agreements or cartels. The aim of this is to maximize joint profits and act as if the market was a pure monopoly, which usually functions in secrecy. The members of a cartel, by and large, seek to camouflage their activities to avoid detection by the Commission. Perpetuation of cartels is ensured through retaliation threats. If any member cheats, the cartel members retaliate through temporary price cuts to take business away or can isolate the cheating member.
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How to cite this article:
Dr. Kavita Dhull. Cartel and competition law in India: An overview. International Journal of Academic Research and Development, Volume 3, Issue 1, 2018, Pages 1043-1045
International Journal of Academic Research and Development International Journal of Academic Research and Development